|
| |
|
Penalty for failure to produce documents etc |
| |
10 (1) | A person who fails to comply with a notice under paragraph 8 |
| |
(notice to produce documents etc for purposes of enquiry) is |
| |
| |
(a) | to a penalty of £50, and |
| 5 |
(b) | if the failure continues after a penalty is imposed under |
| |
paragraph (a), to a further penalty or penalties not |
| |
exceeding £30 for each day on which the failure continues. |
| |
(2) | No penalty shall be imposed under this paragraph in respect of a |
| |
failure at any time after the failure has been remedied. |
| 10 |
| |
11 (1) | An enquiry under paragraph 7 is completed when the Inland |
| |
Revenue by notice (a “closure notice”) inform the purchaser that |
| |
they have completed their enquiries and state their conclusions. |
| |
(2) | A closure notice must either— |
| 15 |
(a) | state that in the opinion of the Inland Revenue no |
| |
amendment of the claim is required, or |
| |
(b) | if in the Inland Revenue’s opinion the claim is insufficient |
| |
or excessive, amend the claim so as to make good or |
| |
eliminate the deficiency or excess. |
| 20 |
| In the case of an enquiry into an amendment of a claim, paragraph |
| |
(b) applies only so far as the deficiency or excess is attributable to |
| |
| |
(3) | A closure notice takes effect when it is issued. |
| |
Direction to complete enquiry |
| 25 |
12 (1) | The claimant may apply to the General or Special Commissioners |
| |
for a direction that the Inland Revenue give a closure notice within |
| |
| |
(2) | Any such application shall be heard and determined in the same |
| |
| 30 |
(3) | The Commissioners hearing the application shall give a direction |
| |
unless they are satisfied that the Inland Revenue have reasonable |
| |
grounds for not giving a closure notice within a specified period. |
| |
Giving effect to amendments under paragraph 11 |
| |
13 (1) | Within 30 days after the date of issue of a notice under paragraph |
| 35 |
11(2)(b) (closure notice that amends claim), the Inland Revenue |
| |
shall give effect to the amendment by making such adjustment as |
| |
may be necessary, whether— |
| |
(a) | by way of assessment on the claimant, or |
| |
(b) | by discharge or repayment of tax. |
| 40 |
(2) | An assessment made under sub-paragraph (1) is not out of time if |
| |
it is made within the time mentioned in that sub-paragraph. |
| |
|
| |
|
| |
|
Appeals against amendments under paragraph 11 |
| |
14 (1) | An appeal may be brought against a conclusion stated or |
| |
amendment made by a closure notice. |
| |
(2) | Notice of the appeal must be given— |
| |
| 5 |
(b) | within 30 days after the date on which the closure notice |
| |
| |
(c) | to the officer of the Board by whom the closure notice was |
| |
| |
(3) | The notice of appeal must specify the grounds of appeal. |
| 10 |
(4) | On the hearing of the appeal the Commissioners may allow the |
| |
appellant to put forward grounds not specified in the notice, and |
| |
take them into consideration, if satisfied that the omission was not |
| |
deliberate or unreasonable. |
| |
(5) | Paragraph 37 of Schedule 10 (settling of appeals by agreement) |
| 15 |
applies in relation to an appeal under this paragraph as it applies |
| |
in relation to an appeal under paragraph 35 of that Schedule. |
| |
(6) | On an appeal against an amendment made by a closure notice, the |
| |
Commissioners may vary the amendment appealed against |
| |
whether or not the variation is to the advantage of the appellant. |
| 20 |
(7) | Where any such amendment is varied, whether by the |
| |
Commissioners or by the order of a court, paragraph 13 (giving |
| |
effect to amendments under paragraph 11) applies (with the |
| |
necessary modifications) in relation to the variation as it applied |
| |
in relation to the amendment. |
| 25 |
Jurisdiction of Commissioners |
| |
15 (1) | An appeal against a conclusion stated or amendment made by a |
| |
closure notice is to be made to the Special Commissioners if it |
| |
relates to a claim made to the Board. |
| |
| 30 |
| |
(b) | paragraph 33(4) of Schedule 10 (appeal against decision on |
| |
claim for relief in case of double assessment), and |
| |
(c) | any right to elect to bring an appeal before the Special |
| |
Commissioners conferred by regulations under Schedule |
| 35 |
17 (General and Special Commissioners, appeals and other |
| |
| |
| an appeal under any provision of this Schedule is to be made to the |
| |
| |
| 40 |
| |
Stamp duty land tax: application to certain partnership transactions |
| |
1 | In Schedule 15 to the Finance Act 2003 (c. 14) (stamp duty land tax: |
| |
partnerships), for Part 3 (transactions excluded from stamp duty land tax) |
| |
|
| |
|
| |
|
| |
| |
Transactions to which special provisions apply |
| |
| |
9 (1) | This Part of this Schedule applies to certain transactions |
| 5 |
| |
(a) | the transfer of an interest in land to a partnership |
| |
| |
(b) | the transfer of an interest in a partnership (paragraphs 12, |
| |
| 10 |
(c) | the transfer of an interest in land from a partnership |
| |
| |
(2) | References in this Part of this Schedule to the transfer of an interest |
| |
| |
(a) | the grant or creation of an interest in land, |
| 15 |
(b) | the variation of an interest in land, and |
| |
(c) | the surrender, release or renunciation of an interest in land. |
| |
Transfer of interest in land to a partnership: general |
| |
10 (1) | This paragraph applies where— |
| |
(a) | a partner transfers an interest in land to the partnership, or |
| 20 |
(b) | a person transfers an interest in land to a partnership in |
| |
return for an interest in the partnership, or |
| |
(c) | a person connected with— |
| |
| |
(ii) | a person who becomes a partner as a result of or in |
| 25 |
connection with the transfer, |
| |
| transfers an interest in land to the partnership. |
| |
| It applies whether the transfer is in connection with the formation |
| |
of the partnership or is a transfer to an existing partnership. |
| |
(2) | The chargeable consideration for the transaction shall be taken to |
| 30 |
be equal to a proportion of the market value of the interest |
| |
| |
(3) | That proportion is the total of the other partners’ partnership |
| |
shares immediately after the transfer. |
| |
(4) | Paragraph 11 applies (instead of sub-paragraphs (2) and (3)) if the |
| 35 |
whole or part of the chargeable consideration for the transaction is |
| |
| |
(5) | Paragraphs 6 to 8 (responsibility of partners) have effect in relation |
| |
to a transaction to which this paragraph applies, but the |
| |
responsible partners are— |
| 40 |
(a) | those who were partners immediately before the transfer |
| |
and who remain partners after the transfer, and |
| |
(b) | any person becoming a partner as a result of, or in |
| |
connection with, the transfer. |
| |
|
| |
|
| |
|
Transfer of interest in land to a partnership: chargeable consideration including rent |
| |
11 (1) | This paragraph applies in relation to a transaction to which |
| |
paragraph 10 applies where the whole or part of the chargeable |
| |
consideration for the transaction is rent. |
| |
(2) | Schedule 5 provides for the calculation of the tax chargeable in |
| 5 |
respect of the transaction, subject to the following provisions of |
| |
| |
(3) | Paragraph 2 of Schedule 5 (calculation of tax chargeable in respect |
| |
of rent) has effect as if— |
| |
(a) | for “the net present value of the rent payable over the term |
| 10 |
of the lease” there were substituted “the chargeable |
| |
proportion of the net present value of the rent payable over |
| |
the term of the lease”, and |
| |
(b) | for “the net present values of the rent payable over the |
| |
terms of all the leases” there were substituted “the |
| 15 |
chargeable proportions of the net present values of the rent |
| |
payable over the terms of all the leases”. |
| |
(4) | If there is chargeable consideration other than rent, that |
| |
chargeable consideration shall be taken to be equal to the |
| |
chargeable proportion of the market value of the interest |
| 20 |
| |
(5) | If there is no chargeable consideration other than rent— |
| |
(a) | there shall (despite that) be taken to be chargeable |
| |
consideration other than rent (in particular for the |
| |
purposes of paragraph 9 of Schedule 5), and |
| 25 |
(b) | that chargeable consideration shall be taken to be equal to |
| |
the chargeable proportion of the market value of the |
| |
| |
(6) | The chargeable proportion is the total of the other partners’ |
| |
partnership shares immediately after the transfer. |
| 30 |
Transfer of partnership interest: consideration given and interest in land held |
| |
12 (1) | A transfer of an interest in a partnership is a chargeable |
| |
| |
(a) | consideration is given for the transfer, and |
| |
(b) | the relevant partnership property includes an interest in |
| 35 |
| |
| The purchaser under the transaction is the person who acquires an |
| |
increased partnership share or, as the case may be, becomes a |
| |
partner in consequence of the transfer. |
| |
(2) | Consideration is regarded as given for the transfer— |
| 40 |
(a) | in a case within paragraph 27(a), if consideration in money |
| |
or money’s worth is given by or on behalf of the person |
| |
| |
(b) | in a case within paragraph 27(b), if there is a withdrawal of |
| |
money or money’s worth from the partnership by the |
| 45 |
person reducing his interest or ceasing to be a partner. |
| |
|
| |
|
| |
|
(3) | The “relevant partnership property”, in relation to a transfer of an |
| |
interest in a partnership, is every interest in land held as |
| |
partnership property immediately after the transfer, other than— |
| |
(a) | any interest that was transferred to the partnership in |
| |
connection with the transfer; |
| 5 |
(b) | a lease to which paragraph 13 (exclusion of market rent |
| |
| |
(4) | The chargeable consideration for the transaction shall be taken to |
| |
be equal to a proportion of the market value of the relevant |
| |
| 10 |
| |
(a) | if the person acquiring the interest in the partnership was |
| |
not a partner before the transfer, his partnership share |
| |
immediately after the transfer; |
| |
(b) | if he was a partner before the transfer, the difference |
| 15 |
between his partnership share before and after the transfer. |
| |
Exclusion of market rent leases |
| |
13 (1) | A lease held as partnership property immediately after a transfer |
| |
of an interest in the partnership is not relevant partnership |
| |
property for the purposes of paragraph 12(3) if the following three |
| 20 |
| |
(2) | The first condition is that— |
| |
(a) | no consideration other than rent has been given in respect |
| |
of the grant of the lease, and |
| |
(b) | no arrangements are in place at the time of the transfer for |
| 25 |
any consideration other than rent to be given in respect of |
| |
| |
(3) | The second condition is that the rent payable under the lease as |
| |
granted was a market rent at the time of the grant. |
| |
(4) | The third condition is that— |
| 30 |
(a) | the lease provides for the rent payable under it to be |
| |
| |
(b) | the first review date is not more than 5 years after the date |
| |
on which the term of the lease begins; |
| |
(c) | if there is more than one review date under the lease, the |
| 35 |
interval between any two of them is not more than 5 years; |
| |
(d) | the rent payable under the lease as a result of a review is |
| |
required to be the market rent at the review date (or, if |
| |
higher, the rent payable under the lease immediately |
| |
| 40 |
(5) | The market rent of a lease at any time is the rent which the lease |
| |
might reasonably be expected to fetch at that time in the open |
| |
| |
(6) | A review date is a date from which the rent determined as a result |
| |
of a rent review is payable. |
| 45 |
|
| |
|
| |
|
Partnership interests: application of provisions about exchanges etc. |
| |
14 (1) | Where paragraph 5 of Schedule 4 (exchanges) applies to the |
| |
acquisition of an interest in a partnership in consideration of |
| |
entering into a land transaction with an existing partner, the |
| |
interest in the partnership shall be treated as a major interest in |
| 5 |
land for the purposes of that paragraph if the relevant partnership |
| |
property includes a major interest in land. |
| |
(2) | In sub-paragraph (1) “relevant partnership property” has the |
| |
meaning given by paragraph 12(3). |
| |
(3) | The provisions of paragraph 6 of Schedule 4 (partition etc: |
| 10 |
disregard of existing interest) do not apply where this paragraph |
| |
| |
Transfer of partnership interest pursuant to earlier arrangements |
| |
15 (1) | This paragraph applies where— |
| |
(a) | there is a transfer of an interest in land to a partnership |
| 15 |
| |
(b) | the land transfer falls within paragraph (a), (b) or (c) of |
| |
| |
(c) | there is subsequently a transfer of an interest in the |
| |
partnership (“the partnership transfer”); |
| 20 |
(d) | the partnership transfer is made— |
| |
(i) | if the land transfer falls within paragraph 10(1)(a) |
| |
or (b), by the person who makes the land transfer; |
| |
(ii) | if the land transfer falls within paragraph 10(1)(c), |
| |
by the partner concerned; |
| 25 |
(e) | the partnership transfer is made pursuant to arrangements |
| |
that were in place at the time of the land transfer; |
| |
(f) | the partnership transfer is not (apart from this paragraph) |
| |
a chargeable transaction. |
| |
(2) | The partnership transfer is a chargeable transaction. |
| 30 |
(3) | The partners shall be taken to be the purchasers under the |
| |
| |
(4) | The chargeable consideration for the transaction shall be taken to |
| |
be equal to a proportion of the market value, as at the date of the |
| |
transaction, of the interest transferred by the land transfer. |
| 35 |
| |
(a) | if the person making the partnership transfer is not a |
| |
partner immediately after the transfer, his partnership |
| |
share immediately before the transfer; |
| |
(b) | if he is a partner immediately after the transfer, the |
| 40 |
difference between his partnership share before and after |
| |
| |
(6) | The partnership transfer and the land transfer shall be taken to be |
| |
| |
(7) | Paragraphs 6 to 8 (responsibility of partners) have effect in relation |
| 45 |
to the partnership transfer, but the responsible partners are— |
| |
|
| |
|
| |
|
(a) | those who were partners immediately before the transfer |
| |
and who remain partners after the transfer, and |
| |
(b) | any person becoming a partner as a result of, or in |
| |
connection with, the transfer. |
| |
Transfer of interest in land from a partnership: general |
| 5 |
16 (1) | This paragraph applies where an interest in land is transferred— |
| |
(a) | from a partnership to a person who is or has been one of |
| |
| |
(b) | from a partnership to a person connected with a person |
| |
who is or has been one of the partners. |
| 10 |
(2) | There is a transfer of an interest in land from a partnership in any |
| |
| |
(a) | an interest in land that was partnership property ceases to |
| |
be partnership property, or |
| |
(b) | an interest in land is granted or created out of partnership |
| 15 |
property and the interest is not partnership property. |
| |
(3) | The chargeable consideration for the transaction shall be taken to |
| |
be equal to the chargeable proportion of the market value of the |
| |
| |
| Paragraph 18 provides for determining the chargeable proportion. |
| 20 |
(4) | Paragraph 17 applies (instead of sub-paragraph (3)) if the whole or |
| |
part of the chargeable consideration for the transaction is rent. |
| |
(5) | For the purposes of this paragraph property that was partnership |
| |
property before the partnership was dissolved or otherwise |
| |
ceased to exist shall be treated as remaining partnership property |
| 25 |
| |
Transfer of interest in land from a partnership: chargeable consideration including |
| |
| |
17 (1) | This paragraph applies in relation to a transaction to which |
| |
paragraph 16 applies where the whole or part of the chargeable |
| 30 |
consideration for the transaction is rent. |
| |
(2) | Schedule 5 provides for the calculation of the tax chargeable in |
| |
respect of the transaction, subject to the following provisions of |
| |
| |
(3) | Paragraph 2 of Schedule 5 (calculation of tax chargeable in respect |
| 35 |
of rent) has effect as if— |
| |
(a) | for “the net present value of the rent payable over the term |
| |
of the lease” there were substituted “the chargeable |
| |
proportion of the net present value of the rent payable over |
| |
the term of the lease”, and |
| 40 |
(b) | for “the net present values of the rent payable over the |
| |
terms of all the leases” there were substituted “the |
| |
chargeable proportions of the net present values of the rent |
| |
payable over the terms of all the leases”. |
| |
(4) | If there is chargeable consideration other than rent, that |
| 45 |
chargeable consideration shall be taken to be equal to the |
| |
|
| |
|